Western Copper and Gold (TSX:WRN, NYSE:WRN) has signed a letter of intent with M3 Engineering and Technology to develop an agreement for M3 to operate and maintain the Casino mine. The letter of intent outlines the general terms and scope by which M3 will operate the heap leach and concentrator processing facilities at Casino and provide procurement and contract management services.
According to the press release:
A significant component of M3′s compensation will be tied to mutually agreed-upon measureable key performance indicators relating to production, safety, and environmental performance. The two parties expect to finalize terms of a definitive agreement by mid-2015.
Dale Corman, chairman and CEO of Western, said:
The proposed arrangement will be key to the successful development of Casino. Having an experienced group of operators like M3 lead the transition from the construction phase to full operation will improve production efficiency while maintaining cost control.